A $9 million government investment to boost wood energy production has been welcomed by an Australian company planning to build a torrefied wood pellet plant in Kawerau.
Energy Minister Simon Watts last week announced the Wood Energy Strategy and Action Plan, which includes $3 million in co-funding through the Energy Efficiency and Conservation Authority and $6 million in repayable grants for businesses developing wood energy manufacturing facilities.
Foresta, the firm behind the proposed $410 million wood pellet plant on industrial-zoned land owned by the Putauaki Trust, confirmed it had already applied for funding under the new scheme.
“If successful, this will support our plans to accelerate development of our site at Kawerau,” said Foresta business development manager Dean Ormond.
The company said the planned facility could employ more than 75 people once operational.
“Foresta welcomes the Government’s commitment to the role of bioenergy in helping meet New Zealand’s energy and climate challenges,” Ormond said. “It’s critical that New Zealand makes more of its considerable forestry resources. Foresta is keen to play its part and is pressing ahead with plans for its torrefied wood processing facility in Kawerau.”
Kawerau mayor-elect Faylene Tunui also welcomed the project, saying its blend of economic growth and environmental stewardship — kaitiaki taiao — was “great news for Kawerau and Aotearoa New Zealand.”
Foresta said torrefied wood pellets have strong potential to replace coal at Huntly Power Station and in other industrial processes requiring high-temperature energy.
East Coast MP Dana Kirkpatrick added that the Government’s wood energy initiatives have a strong regional focus.
“This is great news for the Eastern Bay of Plenty, which is leading the charge in this space with Foresta recently announcing its new wood pellet plant,” she said. “Forestry waste like woody debris has long been a challenge for our region — clogging waterways and damaging infrastructure. Now we have the opportunity to turn that problem into a solution by creating a market and destination for this material.”
The Wood Energy Strategy, led by Watts and Forestry Minister Todd McClay, aims to scale up the use of wood residues from forestry and manufacturing as a clean, affordable energy source for industrial heat and electricity generation.
The plan targets replacing up to 40 percent of fossil-fuelled process heat by 2050, significantly cutting emissions and creating regional economic opportunities.
Source: Local Democracy Reporting
NZ government injects $9m into Bay of Plenty wood energy push
